What is income?

Income is the money that an individual or business earns from various sources, such as wages, salaries, investments, rental properties, and business profits. It is typically reported on tax returns and used to calculate taxes owed to the government. Income is a key factor in determining an individual's standard of living and financial stability.

Income is the amount of money that a person or entity receives over a period of time in exchange for goods or services rendered. It can be derived from various sources, such as:

- Labor: Wages, salaries, bonuses, commissions, and other forms of compensation for work performed.
- Business: Profits from owning or operating a business, including revenue from sales of goods or services, interest earned on investments, and dividends received from stock ownership.
- Investment: Interest earned on savings accounts, bonds, and other financial instruments; dividends received from stock investments; and rental income from property.
- Social programs: Benefits received from government or non-profit organizations, such as unemployment insurance, social security payments, or welfare assistance.
- Inheritance or gifts: Money or property received from deceased individuals or as a gift.

Income is important for individuals and households because it provides the financial means to cover expenses, maintain a standard of living, save for the future, and fulfill financial obligations. It is also used to calculate taxes and determine eligibility for government assistance programs.